The following selected accounts appear in the ledger of Upscale Construction Inc. at the beginning of the current year:

Preferred $2\%$ Stock, $$125$ par $(60,000$ shares authorized, $30,000$ shares issued$)$ $$3,750,000$

Paid$-$In Capital in Excess of Par$$Preferred Stock $750,000$

Common Stock, $$15$ par $(600,000$ shares authorized, $210,000$ shares issued$)3,150,000$

Paid$-$In Capital in Excess of Par$$Common Stock $410,000$

Retained Earnings $17,087,000$

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

Issued $60,000$ shares of common stock at $$19,$ receiving cash.

Issued $15,000$ shares of preferred $2\%$ stock at $$142.$

Purchased $36,000$ shares of treasury common for $$20$ per share.

Sold $18,000$ shares of treasury common for $$23$ per share.

Sold $12,000$ shares of treasury common for $$18$ per share.

Declared cash dividends of $$2\mathrm{.}50$ per share on preferred stock and $$0\mathrm{.}04$ per share on common stock.

Paid the cash dividends.

Required:

Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank.

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a$.$ Issued $60,000$ shares of common stock at $$19,$ receiving cash.

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Cash

$1,140,000$

Common Stock

$900,000$

Paid$-$In Capital in Excess of Par$-$Common Stock

$240,000$

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a$.$ What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded?

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b$.$ Issued $15,000$ shares of preferred $2\%$ stock at $$142.$

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Cash

$2,130,000$

Preferred Stock

$1,875,000$

Paid$-$In Capital in Excess of Par$-$Preferred Stock

$255,000$

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b$.$ What is the company receiving for issuing the shares? At what value do the common and preferred stock accounts have to be recorded?

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c$.$ Purchased $36,000$ shares of treasury common for $$20$ per share.

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Treasury Stock

$720,000$

Cash

$720,000$

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c$.$ The purchase of treasury stock is typically recorded using the cost method.

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d$.$ Sold $18,000$ shares of treasury common for $$23$ per share.

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Cash

$414,000$

Treasury Stock

$360,000$

Paid$-$In Capital from Sale of Treasury Stock

$54,000$

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d$.$ What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares.

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e$.$ Sold $12,000$ shares of treasury common for $$18$ per share.

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Cash

$216,000$

Paid$-$In Capital from Sale of Treasury Stock

$24,000$

Treasury Stock

$240,000$

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e$.$ What is the company selling? Pay attention to the price these shares are being sold for and the price originally paid to reacquire these shares.

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f$.$ Declared cash dividends of $$2\mathrm{.}50$ per share on preferred stock and $$0\mathrm{.}04$ per share on common stock.

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Cash Dividends

Cash Dividends Payable

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f$.$ On the date of declaration of a cash dividend, the corporation is legally obligated to pay that dividend. Keep in mind the previous stock transactions that have occurred; would these transactions have any affect on the amount of the cash dividend?

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g$.$ Paid the cash dividends.

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Cash Dividends Payable

Cash